Sysco Corporation (NYSE: SYY), a leading distributor of food products, said its first-quarter sales and earnings decreased from last year. However, the company’s stock rallied early Tuesday, soon after the announcement, as the results were better than the outcome analysts had predicted.
September-quarter profit, adjusted for non-recurring items, dropped to $0.34 per share from $0.98 per share in the corresponding period of last year. Market watchers were looking for a faster decline. At $216.9 million or $0.42 per share, unadjusted profit was down 52% year-over-year.
The bottom-line was impacted by a 23% decrease in net sales to $11.8 billion, which, however, came in slightly above the consensus forecast.
Read management/analysts’ comments on Sysco’s Q1 2021 results
Shares of Sysco moved up about 5% on Tuesday mornings, after closing the previous session higher.